The triggers of competitiveness: the EFIGE cross-country report. Bruegel Blueprint 17, 17 July 2012

There is a pressing need for Europe to grow out of the crisis, meaning that Europe needs to become more competitive, enabling it to capture growth currently taking place mainly in emerging markets. But what are the triggers of competitiveness? The EFIGE project, led by Bruegel, takes a fresh look by inquiring into the determinants of firm-level international performance – focusing on external competitiveness. In the competitiveness debate, it is crucial to understand not only the macroeconomic challenge, but also to find the right micro-level triggers that will generate growth and exports. The authors identify firm-level total factor productivity as a major determinant of growth and exports. Human capital, research, equity finance and performance based incentives for employees also play their parts. Moreover, size matters and large firms typically are much better exporters than their smaller counterparts. This report builds on previous EFIGE research and studies in depth firm performance in seven countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom) to identify the triggers of competitiveness.

The euro crisis: ten roots, but fewer solutions. Bruegel Policy Contribution 2012/17, October 2012

Many factors have contributed to the euro crisis. Some have been addressed by policymakers, even if belatedly, and European Union member states have been willing to improve the functioning of the euro area by agreeing to relinquish national sovereignty in some important areas. However, the most pressing issue threatening the integrity, even the existence, of the euro, has not been addressed: the deepening economic contraction in southern euro-area member states. The common interest lies in preserving the integrity of the euro area and in offering these countries improved prospects. Domestic structural reform and appropriate fiscal consolidation, wage increases and slower fiscal consolidation in economically stronger euro-area countries, a weaker euro exchange rate, debt restructuring and an investment programme should be part of the arsenal. In the medium term, more institutional change will be necessary to complement the planned overhaul of the euro area institutional framework. This will include the deployment of a euro-area economic stabilising tool, managing the overall fiscal stance of the euro area, some form of Eurobonds and measures to make euro-area level decision making bodies more effective and democratically legitimate.

Tunisia in turmoil: how should the EU react? CEPS Commentary, 4 March 2013

The assassination of the opposition leader in Tunisia exposed the underlying divisions between members of the ruling classes, between those in and outside of government, between religious groupings and secularists, and between the coastal areas and the hinterland of Tunisia. Since the revolution, tackling social inclusion has become a pressing problem: men versus women, young versus old, opponents versus supporters of the old regime and political forces inside Tunisia versus those in exile. The National Constituent Assembly (NCA)’s inability to address these fault lines and approve the second draft of the constitution has hampered the transition of the country towards the next elections, while all of the above have undermined trust in the political process. Although Tunisians are primarily responsible for the political processes in their country, argue authors Hrant Kostanyan and Elitsa Garnizova, the EU should step up its efforts to deliver on its commitments in the areas of money, market and mobility.

Current Problems of Social Europe. Research Papers in Law, 7/2007

From the Introduction. The main difficulty of Theology lies in the fact that the very existence of its subject-matter, God, may be put into question. Talking about Social Europe has something of a theological dimension. The aim of this article is to contribute into the debate, by putting into perspective some of the latest manifestations of social Europe. The need for the pursuance of social policies at the European level is now more pressing than ever (para 2). The EU, however, as it now stands, is the direct evolutionary result of the predominantly economic entity created back in 1957. This explains that the social policies pursued at the European level are piecemeal and often impregnated with market concerns (para. 3). From an instrumental point of view, EU social policy is being pursued concomitantly by secondary legislation (hard law) in the fields where the EU does have the relevant competences and by softer means of cooperation (soft law) in several other fields. Hard law has given the occasion to the European Court of Justice (ECJ), in a series of recent judgments, of putting to the fore the concept of a ‘social market’ (para. 4). Soft cooperation has been formalised into the infamous Lisbon Strategy and has been the main object of experimentation with the open method of coordination (OMC) (para. 5). The advances achieved in the above ways, however, do not offer firm answers to basic questions concerning the future development of the European social identity (para. 6)

Who will monitor the spies? CEPS Commentary, 8 January 2014

A majority of national governments across the EU have long tried to cordon off their practices of mass interception of communications data and cyber-hacking of foreign companies and diplomats from supranational scrutiny by the EU institutions and courts, arguing that they remain within the remit of their ‘exclusive competence’ on grounds of national security. In light of the revelations that some EU member states (namely the UK, France, Germany and Sweden) are running their own secret interception programmes, however, the question of whether the EU can and should intervene becomes more pressing. This commentary, by a team of JHA specialists at CEPS, offers four important legal reasons why the covert surveillance programmes of member states should not be regarded as falling outside the scope of EU intervention.

Collateral and Credit Rationing. The role of collateral in explaining and remediating the limited flow of credit to households and SMEs. ECRI Policy Brief No. 7, February 2014

European-wide data concerning both companies and households indicate that the credit rationing phenomenon, which has been predicted by theory, does in fact occur to a significant degree in the European credit market. Among SMEs, micro companies are most vulnerable and the current economic crisis has only made these concerns more pressing. Top-down use of the monetary transmission mechanism alone is insufficient to counter the problem. The other solution consists of a bottom-up, microeconomic stimulation of lending transactions, by focusing on collateral and guarantees. The data confirm the high importance that lenders – especially individual households and micro companies – attach to collateral and guarantees when making their lending decisions. As a consequence, we would argue that those parts of the law governing security interests and guarantees should be one of the primary targets for government policy aimed at improving credit flows, especially in avoiding a conflict between consumer protection measures and laws on surety and guarantees. This policy brief firstly aims to give an overview of the problem of credit rationing and to show that low-income households and SMEs are most concerned by the phenomenon. Focusing solely on loans as a way of financing and on the issues related to access to finance by micro and small companies as well households, it then sketches possible solutions focused on guarantees. This paper brings together data from the Eurosystem Household Finance and Consumption survey (HFCS), Eurostat, and both the latest wave of the extended biennial EC/ECB Survey on the access to finance of SMEs (EC/ECB SAFE 2013) and the latest wave of the smaller semi-annual ECB SAFE Survey, covering the period between October 2012 and March 2013.

The Great Transformation: Memo to the Incoming EU Presidents. Bruegel Policy Brief 2014/04, July 2014

The European Union’s leadership spent the last five years fighting an acute and existential crisis. The next five years, under your leadership, will be no less difficult. You will have to tackle difficult economic and institutional questions while being alert to the possibility of a new crisis. You face three central challenges: (1) The feeble economic situation prevents job creation and hobbles attempts to reduce public and private debt; (2) EU institutions and the EU budget need reform and you will have to deal with pressing external matters, including neighbourhood policy and the EU’s position in the world; (3) You will have to prepare and face up to the need for treaty change to put monetary union on a more stable footing, to review the EU’s competences and to re-adjust the relationship between the euro area and the EU, and the United Kingdom in particular.

On the periphery of global jihad. The North Caucasus: the illusion of stabilisation. OSW Point of View Number 45, November 2014

The situation in the North Caucasus has stabilised, in comparison with previous years, mainly as regards the activity of the Islamic military underground. This is an effect of ideological changes among the militants which have led to a dilution of the Caucasian armed struggle and its marginalisation in global jihad, since top priority has been granted to the Middle Eastern front. The factors which have contributed to this stabilisation are the organisational crisis in the Caucasus Emirate and the outflux of militants to the Middle East, as well the successful ‘carrot and stick’ policy adopted by Moscow. However, the partial stabilisation in the Caucasus is inherently precarious, being a contingent outcome of the situation rather than the result of systemic change. The region’s pressing problems remain unresolved; and these problems are generating chronic instability and cauing the Caucasus to drift away from Russia in civilisational terms. An economic or political crisis in the Russian Federation may result in the conflicts in the Caucasus unfreezing, including a reactivation of the idea of Chechen independence as well as the idea of the Caucasus Emirate, which is a part of global jihad.

European Union Leadership and Enlargement in 2014. Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 14, July 2014

On July 15, 2014 the European Parliament confirmed the new European Commission President. An absolute majority was needed for this purpose, and the 422 votes “For” cleared the 376-vote threshold in the legislative body of 751 members. A Grand Coalition has been formed among the three largest political parties: the European People’s Party (EPP), the Progressive Alliances of Socialists Democrats (S&D), and the Alliance of Liberals and Democrats for Europe (ALDE). Considering policy decisions going forward, the European Union (EU) faces the pressing question: Will there be more, less, or similar power from the EU? There are a greater number voices from across the political spectrum contributing to the democratic plurality. European leaders may regain trust by acknowledging that future governance will not be “business as usual” as the reform agenda gets underway. 2014 has been an exciting and important year in European politics. “This time is different” was the motto for the European Parliament’s election campaign. This essay analyzes recent EU political trends with the new Commission leadership and the Parliamentary elections results. The Parliamentary elections, held in late May, and the new European Commission, planned to be in place in the autumn, influence the leadership direction of the 28-member bloc. Additionally, this year on July 1 Croatia celebrated the first anniversary of joining the EU in 2013. Leading the way for candidate countries, Croatia embraces the democratic politics and capitalist market economics embodied by the EU. The greater number of seats held by newer political parties in the European Parliament demonstrates increasing plurality in the EU democracy. The Parliamentary elections have taken place every 5 years since 1979. In this eighth legislative session, the EPP and the S&D remain the largest parties represented, with 221 and 191 seats respectively. As the EU has evolved, a greater number of voices influence politics. The ongoing point of contention on a host of policies is national sovereignty in relation to pooled sovereignty in the EU. The European Parliament is important for democracy in EU governance since it is the direct link from the national citizens to their elected leaders at the supranational level. The representatives of the European Commission are appointed by the national governments of Member States, and their heads of government are the representatives to the European Council. These three political institutions – the European Parliament, the European Commission, and the European Council – together with other important institutions, including the European Court of Justice Luxembourg, form the EU. The new European Commission President is Jean-Claude Juncker, former Prime Minister and Minister of Finance of Luxembourg (1995-2013). After being nominated by the European Council on June 27, his candidacy was voted on by the European Parliament on July 15, according to the guidelines of the Lisbon Treaty. The leadership for the President of the European Commission has been an important issue, considering Britain’s deliberations on whether or not to stay in the EU in the face of a future national referendum. Voting on June 27, among the European Council on the nomination of Commission President-Designate Juncker, was 26 in favor and 2 opposed. Only Viktor Orbán, the prime minister of Hungary, joined David Cameron, the prime minister of the United Kingdom (UK), with a negative vote (Spiegel and Parker 2014). The UK had not been supportive, being concerned that Juncker embraces the policies of a federalist, prioritizing an ever-closer union above the interests of individual Member States. Historically, since joining the predecessor institution of the European Economic Community in 1973, the UK has had a relatively independent attitude about participation in the EU.

Continuous Off-the-Job Training in East Germany After Unification: Preliminary Results of an Evaluation of the Effects for Individual Workers, CES Germany & Europe Working Papers, No. 05.9, 19 July, 1995

Retraining the labor force to match the demands of a modem economy is seen as an important task during the transition process from a centrally-planned to a market economy. This need was particularly pressing in East Germany, because the transition process has proceeded much faster than in the rest of Eastern Europe. Therefore, substantial resources have been devoted to this purpose. This paper analyzes the impact of continuous off-the-job training in East Germany from the point of view of individuals who were part of the labor force before German unification in 1990. It tries to answer questions about the average gains from participating in a specific type of training. Typical outcomes considered to measure those gains are income, employment status, job security, and expected future changes in job position. The methodology used for the evaluation is the potential outcome approach to causality. This approach has received considerable attention in the statistical literature over the last fifteen years and it has recently been rediscovered by the econometric literature as well. It is adapted to allow for important permanent and transitory shocks, such as unemployment, which influence the decision to participate in the training as well as future labor market outcomes. The empirical part is based on the first four waves of the Socio-Economic Panel (GSOEP)-East (1990-1993). This panel data set has the advantage that the fourth wave contains a special survey on continuous training and that it allows keeping track of individual behavior on a monthly, respectively yearly, basis. The econometric analysis focuses on off-the-job training courses that began after unification and were completed not later than in early 1993. Although it is obviously too early to evaluate the long-term implications, the results suggest that there are no positive effects in the short run.

Beyond Cooperation and Competition: What Kind of Federalism for EU Social Policy? CES Germany & Europe Working Papers, No. 00.7, December 2000

The EU has become a loose kind ofsocial federation, a fact that has not been adequately taken into account due to the peculiarities ofthe Maastricht strategy for monetary integration. Yet, a new approach to the economic theory offederalism is required ifone wants to analyze the most pressing issues ofEU social policy. The social insurance view of redistribution and stabilization provides for such an approach. This view supports laboratory federalism in which it is the role ofthe EU Commission to contain systems competition in order to preserve "stability in diversity." The role ofthe EU level would be to promote horizontal and vertical learning processes and to make sure that stability concerns ofthe EU are taken seriously by member countries' governments. The minimum requirements framework for social policy that the EU Commission has adopted must be taken as a point of departure, even though it is a less than satisfactory approach from this point of view. Laboratory standardization, in contrast, would not set specific minimum requirements but meta-standards that protect systems functions and safeguard against systems failures.

How to deal with Europe’s British problem. EPC Discussion Paper, 11 September 2015

This paper argues that the UK government's renegotiation bid is too feeble to be deserving of concessions by its EU partners, but that the rest of the EU can give the British what they seem to want by pressing on themselves to federal union.

Europe’s reactive and protective muddling through: the results of a summit in fire fighting mode. EPC Post-Summit Analysis, 19 October 2015

The EU’s October summit was dominated by one issue; the migration and refugee crisis, with EU leaders intent on putting on a public display of unity after weeks of bitter arguments, and concentrating on fire-fighting and immediate measures to tackle the most pressing reasons for, and impacts of, the crisis. Longer-term measures to address some of the root causes of increased migratory flows, support for the integration of newly arrived refugees or the introduction of new channels of legal migration, were not discussed. The Summit also spent little time on two issues that had originally been expected to be a key part of the agenda: the forthcoming British referendum on EU membership, where irritation with the slow pace of talks and British vagueness about its demands were in evidence; and the governance of Economic and Monetary Union (EMU), where EU leaders missed another opportunity for a thorough debate about future perspectives on the basis of the ‘Five Presidents’ Report’.

Migration and Asylum Data for Policy-making in the European Union – The problem with numbers. CEPS Liberty and Security in Europe No. 89/March 2016

Among many other problems, the migration, humanitarian and policy crises in the European Union in 2015 and early 2016 have highlighted a pressing need for reliable, timely and comparable statistical data on migration, asylum and arrivals at national borders. In this fast-moving policy field, data production and the timeliness of dissemination have seen some improvements but the sources of data remain largely unchanged at national level. In this paper the author examines the reasons for some of the problems with the data for policy and for public discussion, and makes a set of recommendations that call for a complete and updated inventory of data sources and for an evaluation of the quality of data used for policy-making.